IUP Publications Online
 
Home About IUP Magazines Journals Books Archives
     
Recommend    |    Subscriber Services    |    Feedback    |     Subscribe Online
 
Effective Executive Magazine:
Corporate Leadership and Governance for Increasing Stakeholder Involvement and Developing Stronger Connections†
 
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 
 

Many organizations and their supply chains are networks of relationships, but greater connectivity, additional connections and more intimate relationships can involve costs and risks as well as confer benefits, while inappropriate relationships can be harmful. Aspects of company law and regulation and contemporary corporate leadership and governance codes, priorities and practices favor some stakeholders over others and can hinder rather than help the building of relationships with a wider range of stakeholders. Directors and boards need to consider what changes are needed in priorities, practices and initiatives to accommodate disruptive technologies, new business models and the sharing economy; better understand the perspectives, aspirations and requirements of stakeholders; and involve, engage and motivate them in order to achieve more balanced, relevant, cost-effective and mutually beneficial relationships with them. Consideration is also required of whether such changes and a more socially responsible approach to business might help to establish and/or rebuild trust and encourage closer collaboration and more co-creation of value.

   
With greater connectivity, many people and organizations have far more connections than they have valued and lasting relationships. Companies are networks of relationships that may have the potential to grow organically (Coulson-Thomas, 1992, 2002 and 2004). The issue for many boards is how to develop these relationships, make them more intimate, long-lasting and mutually beneficial, at a time when trust in business and business leaders is at a low level. Where they have a choice and an online alternative is just a click away, customers can also be fickle. Sales practices such as offering new customers better deals than existing ones encourages switching and disloyalty.

Do contemporary leadership, governance and management practices keep external customers and other stakeholders at a distance? Those who have been successful at building strategic and key-account relationships understand the importance of locking customers in (Hurcomb, 1998). Do we need new ways of reaching, engaging, involving and developing stronger connections with customers, employees and other stakeholders and securing their continuing allegiance?
 
 
Effective Executive Journal,Contemporary Corporate Governance ,Managing Risk and Preventing Fraud,Stakeholder Engagement.